Platinum Asset Management Earnings: Challenges Remain as Turnaround in Early Stages

No-moat Platinum’s fiscal 2024 results fell short of expectations, with net profit declining 44% to AUD 45 million, well below our AUD 65 million forecast. However, this was largely due to the timing of expected cost savings and their associated implementation costs. Adjusting for this, our longer-term earnings forecasts stand, where we expect a material compression in Platinum's earnings. Specifically, we forecast net profit to decline to around AUD 35 million by fiscal 2029, well below its five-year average of AUD 109 million. We retain our fair value estimate of AUD 1 per share, with shares currently screening as mildly overvalued.